Foundations of Strategy

Quiz 1

Red Ocean Strategy

Competing in existing market spaces, beating competition head-on, and exploiting existing demand.

Blue Ocean Strategy

Creating uncontested market space, making competition irrelevant, and capturing new demand.

Value-Cost Trade-Off

Red oceans require picking between value and cost; blue oceans break this trade-off to pursue both.

Tier 1 Noncustomers (Soon-to-be)

Edge customers who minimally use offerings today and are ready to jump to a better option.

Tier 2 Noncustomers (Refusing)

People who consciously choose against the industry's offerings, using an alternative or nothing.

Tier 3 Noncustomers (Unexplored)

Noncustomers in distant markets never considered before, holding the largest blue ocean opportunity.

Porter's Five Forces

Framework used to answer: 'Is this industry even worth competing in?'

SWOT Analysis

Framework used to answer: 'What's our overall situation, quickly?'

Porter's Generic Strategies

Framework used to answer: 'How should we compete once we're in?'

BCG Growth-Share Matrix

Framework used to answer: 'Where should capital go across our business units?'

Ansoff Matrix

Framework used to answer: 'Should we grow via new products or new markets?'

Resource-Based View (VRIN)

Framework used to answer: 'Do we actually have a defensible advantage?'